30% investment tax credit for solar, small wind, geothermal, fuel cell, microturbine, combined heat and power, waste energy recovery, energy storage technology, and biogas constructed before January 1, 2025.
Open immediately, Projects must be constructed by January 1, 2025.
30% of project cost, no maximum to be claimed.
Production tax credit of 1.5 cents/kilowatt hour (inflation adjusted to 2.6 cents / kwh) for solar, geothermal, wind, closed- and open-loop biomass, landfill gas, municipal solid waste, hydropower, and marine and hydrokinetic facilities.
Open immediately, Projects must be constructed by January 1, 2025.
N/A
30% technology neutral investment tax credit replaces Section 48 with an emissions-based investment tax credit that is neutral and flexible between clean electricity technologies. Taxpayers choose between a PTC (45Y) and an ITC (48E).
Credits start January 1, 2025 and begin to be reduced after January 1, 2034 or when emission targets are achieved (i.e., the electric power sector emits 75% less carbon than 2022).
30% of project cost, no maximum to be claimed.
Technology neutral production tax credit replaces Section 45 with an emissions-based production tax credit that is neutral and flexible between clean electricity technologies. Credit of 1.5 cents/kwh (inflation adjusted projected at 2.8 cents/kwh). Taxpayers choose between a PTC (45Y) and an ITC (48E).
Credits start January 1, 2025 and begin to be reduced after January 1, 2034 or when emission targets are achieved (i.e., the electric power sector emits 75% less carbon than 2022).
N/A
Under the Inflation Reduction Act, ITC and PTC projects may be eligible for “adder” or bonus credits for projects meeting certain requirements. See additional details for criteria.
Credits available beginning January 1, 2023.
Criteria for bonus eligibility:
Building owners can get a section 179D tax deduction for new construction and retrofits to commercial buildings. The energy efficiency improvements, including lighting, envelope design, and heating and cooling, must reduce the energy consumption by a minimum of 25% when compared to a building that meets the minimum requirements of Reference Standard 90.1 of the American Society of Heating, Refrigerating and Air-Conditioning Engineers (ASHRAE).
Building owners can get an additional 179D deduction every three years for subsequent energy efficiency improvements.
Builders and contractors of single-family and manufactured homes can collect a credit for meeting the Energy Star Program requirements and the DOE Zero Energy Ready Home criteria. Builders and contractors of multifamily homes can collect a credit for each Energy Star-compliant unit or Zero Energy Ready Home-compliant unit.
January 2023 – December 31, 2032.
A $7,500 tax credit tax for the purchase of electric vehicles or other qualified clean vehicles for commercial vehicles under 14,000 lbs. and a $40,000 tax credit for commercial vehicles over 14,000 lbs. Additional information coming soon.
January 1, 2023 through December 31, 2032.
This program provides credit assistance to creditworthy borrowers for projects to maintain, upgrade, and repair dams identified in the National Inventory of Dams owned by non-federal entities.
LOIs accepted on an ongoing basis beginning September 6, 2022.
Funds Available: $75 million; $64 million for loans and $11 million for program administration.
Under the IRA, owners of renewable energy projects will be able to choose between an Investment Tax Credit (ITC) or Production Tax credit (PTC). An ITC reduces the cost of installing clean technologies, while PTCs credit project owners for the production of their clean technologies. Stand-alone storage is only eligible for the ITC. For greater detail on the timelines and credit amounts, see the linked tables:
Disclaimer: Nothing in this summary should be interpreted as tax or legal advice.
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